Live Updates > Live Update Details
2025-10-10 21:20:40
[Dealers' holdings structure shifts dramatically, with corporate bonds becoming the market's new favorite] ⑴ As of the week ending October 1, dealers' corporate bond holdings surged 11.0%, with a two-week cumulative increase of 44.8%, reaching $11 billion. ⑵ Investment-grade corporate bond holdings soared 129%, with 1.3-5 year maturities rising 53.1% and non-investment-grade maturities under 5 years rising 34.6%. ⑶ MBS holdings increased 7.6% to $107.6 billion, reaching a new high since July 30, 2025, with pass-through securities rising 31% over the two-week period. ⑷ Asset-backed securities holdings rose 4.2% to $11.2 billion, with credit card-backed securities surging 39.9% in a single week. ⑸ Institutional bond holdings plummeted 23% to $11.8 billion, with discount bills plummeting 71.9% as the primary drag. ⑹ Despite the recent significant increase, total corporate bond holdings remain $190 billion below pre-financial crisis levels, reflecting the long-term constraints on market makers' risk appetite.
